We have recently sold our apartment and looking at purchasing a house for 750k to 850k.

We currently have 120k saved and looking at putting a 10% deposit and stamp duty of 30k.

We have gone through one broker who mentioned the bank had no issues but due to myself being self employed and running through a trust, the LMI company is knocking it back, therefore I was advised to put a 20% down; this would equate to 170k + 30k stamp duty, a bit more than we expected.

The business has been running for two years and I can provide BAS statements and accountant letters.

Income for me and my partner is approx 170k per yr.

Idealy we would want to only put 10-15% deposit down, what are our options here?

Are we at the mercy of the LMI people?

Thanks

Hi,

So just to clarify do you have tax returns as evidence of your income? BAS and an accountant's letter are only acceptable evidence of income for some types of low doc loans. If you are borrowing over 80% of the property value then tax returns are required by all lenders and LMI providers and they will use either an average of the two years or the most recent years income to assess your ability to repay the loan.

We can help you to borrow in a trust as this is one of our areas of expertise. We are also very good at assessing complex self employed income structures and working out which lender would see your income in the best possible light.

_________________
Otto Dargan
Mortgage Broker
Ph: 1300 889 743
The Home Loan Experts

Our most popular pages:

• Credit Score Calculator: Do the banks see you as a high risk borrower?
• LMI Calculator: Do you qualify for discounted LMI?
• Genuine Savings: The biggest hurdle for first home buyers.
• Employment letter, Accountant letter & Gift letter templates

Hi Otto,

Thanks for the fast reply!

The tax returns for myself don't show the income as the accountant has setup the trust under another family trust which has losses, therefore helping our tax situation.

Can I possible send you an email with more information?

Thanks again

Yes I think it would be best to chat on the phone with this one. If your business distributes income via a trust to a trust that has accumulated losses then it is unlikely we can get you an LMI loan unless all other aspects of your situation are very strong. We would really need to see your full situation and then discuss it with the credit managers of a few lenders that can consider it before working out if we can help or not.

Please call one of our mortgage brokers on 1300 889 743.

Thanks

_________________
Otto Dargan
Mortgage Broker
Ph: 1300 889 743
The Home Loan Experts

Our most popular pages:

• Credit Score Calculator: Do the banks see you as a high risk borrower?
• LMI Calculator: Do you qualify for discounted LMI?
• Genuine Savings: The biggest hurdle for first home buyers.
• Employment letter, Accountant letter & Gift letter templates